Overview

Consumer Learning & Experience: Diving Deeper

1. Introduction to Learning & Elements of Learning:

 Learning: The process of acquiring and retaining knowledge, skills, and behaviors.

 Elements of Learning:

o Motivation: Desire to learn, driven by external rewards, internal curiosity, or

personal goals.

o Attention: Focusing on relevant information and stimuli.

o Perception: Interpreting and organizing information based on existing knowledge

and experiences.

o Memory: Encoding, storing, and retrieving information.

o Reinforcement: Strengthening desired behaviors through positive feedback or

rewards.

2. Learning Theories:

 Behavioral Learning Theories: Focus on observable behavior changes through conditioning

and reinforcement.

o Classical Conditioning: Associating stimuli with positive or negative emotions

(e.g., Pavlov's dogs).

o Operant Conditioning: Learning through consequences of actions (e.g., rewards for

desired behaviors).

 Cognitive Learning Theories: Emphasize internal mental processes and knowledge

acquisition.

o Information Processing Theory: Individuals process information through stages like

encoding, storage, and retrieval.

o Social Learning Theory: Learning through observing and imitating others

(e.g., Bandura's Bobo doll experiment).

3. Elaboration Likelihood Model (ELM):

 Explains how message processing depth influences persuasion.

 Two routes to persuasion:

o Central Route: Deep processing based on logic, facts, and evidence. Effective for
complex messages and involved consumers.

o Peripheral Route: Shallow processing based on emotions, imagery, and social

cues. Effective for simpler messages and less involved consumers.

4. Experiential Marketing:
  Creating engaging and interactive experiences for consumers to build brand connections
and relationships.

 Aims to evoke emotions, create memories, and foster positive associations with the brand.

 Examples: pop-up shops, product demos, interactive events, user-generated content

campaigns.

5. Holistic Experience vs. Unique Selling Proposition (USP):

 Holistic Experience: Creates a seamless and consistent journey across all touchpoints with
the brand, catering to emotional, sensory, and functional needs.

 USP: A single, differentiating feature or benefit that sets the brand apart from competitors.

Key Differences:

 Focus: Holistic experience offers a broader perspective, while USP focuses on a specific
attribute.

 Complexity: Holistic experiences are multi-faceted, while USPs are concise and easy to
communicate.

 Customization: Holistic experiences can be tailored to individual needs, while USPs are
generally universal.

Learning:

• Learning is the process by which individuals acquire the purchase and consumption
knowledge and the experience they apply for future related behaviour.

• Consumer learning is a process that evolves and changes as consumers acquire knowledge
from experiences, observation and interaction with others.

• Learning is a relatively permanent change in the behaviour.

• Consumer learning continuously evolves and changes as result of newly acquired knowledge
or from the experience.

• Basic elements of learning - motivation, cues, reinforcement and response

Nature of learning

1. Learning involves a change in behaviour:

 While not always readily observable, learning ultimately manifests in changes in how we
think, feel, or act.

 This can include gaining new knowledge, developing new skills, modifying existing
attitudes, or adapting behaviors based on experience.

2. The change in behaviour occurs because of experience:

 We learn through our interactions with the world around us, including formal
education, personal experiences, social interactions, and exposure to information.

 Each experience leaves a trace, shaping our understanding and influencing future actions.

3. Influence of marketing communication:

 Marketing messages and experiences can be powerful learning tools, shaping brand
perceptions, product knowledge, and purchase decisions.

 By understanding how consumers learn, marketers can design communication strategies

that effectively influence their target audience.

4. Cognitive process and can be inferred through actions and behaviours:

 Learning primarily happens through internal mental processes, but its effects are often
visible through observable actions and behaviours.

 By observing choices, responses, and engagement, we can gain insights into what someone
has learned and how it influences their behavior.

5. Intentional, ongoing, and incidental:

 Learning can be intentional, when we actively seek out new knowledge or skills.

 It can also be ongoing and unconscious, as we continuously absorb information and adapt
our behavior based on everyday experiences.

 Incidental learning occurs unexpectedly, often as a byproduct of other activities.

1.Behavioral Learning Theories:

These theories focus on observable changes in behavior caused by external stimuli and rewards.
They are particularly relevant in understanding how consumers respond to marketing campaigns and
incentives.

 Classical Conditioning:

o All organisms can be taught certain behaviour through repetition (i.e.

Conditioning)

o Ivan Pavlov, a Russian physiologist proposed a theory of classical

conditioning on dogs

o Pairing a neutral stimulus with a positive or negative outcome to create an

association (e.g., associating a brand logo with happy music in ads).

o Attempts to create an association between a stimulus (a brand name/ logo)

and some response (behaviour or feeling)

o Pairing unknown brand repeatedly together with some stimulus that you
know already elicit positive feeling or emotions
 Eg: Thanda matlab coca cola

Implications

1. Repetition:
 It increases the strength of the association between the conditioned and unconditioned
stimuli
 Slows down process of forgetting
 After a certain number of repetitions, attention and retention decline – ‘advertising wear-
out’
 Hence advertising message is altered through minor or major variations
 The Three-Hit Theory of advertising – aware, show relevance and remind

1. Strengthening the association: Repeatedly pairing a neutral stimulus

(e.g., brand logo) with a positive outcome (e.g., happy music) strengthens the
positive association in the consumer's mind.
2. Diminishing returns: Excessive repetition can lead to boredom and reduced
effectiveness. Finding the optimal repetition for brand recall and positive
association is crucial.
3. Priming: Subliminal or subtle exposure to the stimulus can also activate the
learned association, influencing behavior.

a. Cosmetic Variation:

 Maintaining attention and preventing boredom: Minor changes in visuals, music, or

presentation can keep the ad fresh and engaging while maintaining the core brand
association.
  Targeting different segments: Variations can cater to diverse preferences within the
target audience without losing brand identity.

 Risk of dilution: Excessive cosmetic variation can weaken the core brand association
if it strays too far from the established image.

b. Substantive Variation (ad content change):

 Highlighting new features or benefits: Updating ad content can showcase product

evolution and address changing consumer needs.

 Addressing negative associations: Changing content can respond to criticism or

negative perceptions associated with the brand.

 Risk of brand confusion: Drastic changes might disconnect consumers from the
established brand image, requiring careful communication and transition strategies.

2. Stimulus Generalization: Responding the same way to slightly different stimuli.

a. Learning depends not only on repetition but also on ability of an individual to generalise

b. Pavlov found that dog could salivate not only on sound of bell but somewhat similar
sound, thus making same response to similar yet slightly different stimulus

c. Consumers largely generalise the stimulus

i. Leads to generalization of a drive or cue

ii. Tendency to respond similarly to slightly different or similar stimuli

d. Private label brands (Me-too products)

e. Brand extension (Category + Product Line+ Product form), Family Branding , Licensing

 Positive spillover effects: Positive associations with one product can transfer to similar
products within the same brand.

 Licensing opportunities: Extending the brand to related products or services can leverage
familiarity and positive associations.

 Risk of misappropriation: Unrelated products might damage the brand image if the
association is weak or negative.

 Stimulus generalization explains why some imitative “me too” products succeed in the
marketplace: Consumers confuse them with the original product they have seen advertised.
It also explains why manufacturers of private-label brands try to make their packaging
closely resemble that of the national brand leaders. They are hoping that consumers will
confuse their packages with the leading brand and buy their product rather than the leading
brand.
3. Stimulus Discrimination: The strategy that is the opposite of stimulus generalization aimed at
getting consumers to select a specific stimulus from among similar stimuli, whose objective is to
position products and services in such a way that differentiates them effectively from
competitive offerings.

a. It results in the selection of a specific stimulus among similar stimuli

b. Basis of positioning (unique ways to create a distinct place in consumers mind)

c. Product Differentiation

d. Marketers try to differentiate their brand from competitors (e.g. Coke and Pepsi,
Mountain Dew & Sprite

 Positioning against competitors: Emphasizing unique features differentiates the brand and
avoids getting lost in generic advertising.

 Targeting specific customer segments: Tailoring communication to different groups based

on their needs and preferences.

 Risk of alienating other segments: Overly specific targeting can exclude potential customers
who might still be interested in the brand.

 The objective of marketers’ persuasive messages is to convey a brand’s unique benefits

effectively and differentiate it from competition, which is termed brand differentiation.
Unlike the marketers of brands known as imitators—which are often obscure or store
brands—who hope that consumers will “generalize” by confusing their brands with well-
positioned ones, market leaders’ objective is to convince and enable consumers to clearly
distinguish (“discriminate”) between their products and the imitators.

 Operant Conditioning: Theory by B F Skinner, he experimented on rats and pigeons

o A form of behavioral learning based on the notion that learning occurs

through a trial and-error process, with habits formed as a result of rewards
received for certain responses or behaviors.

o Learning through the consequences of behaviors. Positive reinforcement

(rewards) strengthens desired behaviors, while punishment weakens them
(e.g., offering discounts for repeat purchases).

o Behaviour = f (consequences)

 Rewards and punishment

o Behaviour => pleasant events

 Likely to be repeated

o Behaviour = > unpleasant events

 less likely to be repeated

  Either positive or negative reinforcement can be used to elicit a desired response.
However, negative reinforcement should not be confused with punishment, which is
designed to discourage behavior.
 Reinforcement schedule – Continuous / intermittent

Applications in marketing:

 Designing loyalty programs with rewards systems.

 Using testimonials and influencer endorsements to create positive associations.

 Offering free trials or samples to encourage product trial.

2. Cognitive Learning Theories:

These theories emphasize the role of internal mental processes in learning, focusing on how
individuals actively process information and build knowledge.

1. Information Processing:

 Stages:

o Encoding: Converting information into a form the brain can store

(e.g., visual, auditory, semantic).

o Storage: Retaining information in short-term or long-term memory.

 o Retrieval: Accessing stored information when needed.

 Factors influencing processing:

o Attention: What grabs the consumer's attention?

o Motivation: Why is the information relevant to them?

o Prior knowledge: Existing understanding influences how new information is

interpreted.

o Sensory channels: Visual, auditory, or emotional channels used to present

information.

 Applications in marketing:

o Using clear and concise language and visuals.

o Creating engaging and interactive experiences.

o Segmenting messages based on prior knowledge and needs.

2. Social Learning Theory:

 Mechanisms:

o Observation: Learning by watching others' behavior and outcomes.

o Imitation: Copying observed behaviors, especially if reinforced.

o Modeling: Individuals learn from observing social norms and expectations.

 Factors influencing learning:

o Credibility and attractiveness of the model: Individuals are more likely to imitate
admired or successful role models.

o Consequences of the observed behavior: Seeing positive outcomes reinforces

imitation.

o Social context: Cultural norms and group pressure influence behavior.

 Applications in marketing:

o Using influencer marketing with trusted individuals.

o Showcasing customer testimonials and positive user experiences.

o Highlighting social proof and group endorsement.

3. Elaboration Likelihood Model (ELM):

 Central Route: Deep processing based on logic, facts, and arguments. Effective for complex
messages and involved consumers.

 Peripheral Route: Shallow processing based on emotions, imagery, and social cues. Effective
for simpler messages and less involved consumers.

 Factors influencing route:

 o Message complexity: Complex messages require effortful central route processing.

o Consumer motivation and involvement: Highly involved consumers engage in

central route processing.

o Distractions and time pressure: Can lead to reliance on peripheral route processing.

 Applications in marketing:

o Matching message complexity to product and audience.

o Using strong arguments and evidence for central route persuasion.

o Leveraging emotional appeals and imagery for peripheral route persuasion.

 Applications in marketing of cognitive theories:

o Providing clear and informative product descriptions.

o Creating engaging and interactive website experiences.

o Using storytelling and emotional appeals to connect with consumers.

Key differences between the two theories: behavioural and cognitive

 Emphasis: Behavioral theories focus on external stimuli and reinforcement, while cognitive
theories focus on internal processing and knowledge building.

 Complexity: Behavioral theories are generally simpler and easier to apply, while cognitive
theories offer a more nuanced understanding of learning.

 Limitations: Behavioral theories may oversimplify human behavior, while cognitive theories
can be less readily observable and measured.

Experiential marketing is a powerful strategy for engaging consumers and building stronger brand
connections. Here's a deeper dive into its key aspects:

What is it?

Experiential marketing creates interactive and engaging experiences for consumers to directly
connect with a brand. It goes beyond traditional advertising by immersing consumers in the brand's
story, values, and offerings, aiming to evoke emotions, create memories, and foster positive
associations.

Key elements:

 Focus on experience: It's not just about promoting products or services, but about creating
a memorable and engaging experience that resonates with consumers on an emotional
level.
  Interactive and participatory: Consumers actively participate in the experience, rather than
passively receiving information.

 Multisensory engagement: Appeals to various senses – sight, sound, touch, taste, and smell
– to create a richer and more immersive experience.

 Emotional connection: Aims to evoke positive emotions like joy, excitement, surprise, or
connection to the brand.

 Shareability: Encourages consumers to share their experiences with others, amplifying the
reach and impact of the campaign.

Benefits:

 Increased brand awareness and recall: Creates a lasting impression that surpasses
traditional advertising.

 Enhanced brand image and perception: Allows consumers to experience the brand on a
deeper level, fostering positive associations.

 Stronger emotional connection: Builds emotional bonds that drive loyalty and advocacy.

 Improved purchase intent: Engaging experiences can convert interest into action, leading to
increased sales.

 Valuable customer insights: Provides direct feedback and understanding of consumer

preferences and behaviors.

Examples:

 Pop-up shops with interactive activities and product demonstrations.

 Product sampling events offering sensory experiences.

 Gamified campaigns encouraging consumer participation.

 User-generated content initiatives that leverage consumer experiences.

 Branded events and sponsorships aligned with brand values.

Important considerations:

 Align with brand strategy: Ensure the experience reflects the brand's core values and
resonates with the target audience.

 Measure success: Define clear objectives and track key metrics to evaluate the impact of the
campaign.

 Innovation and creativity: Stand out from the competition with unique and memorable
experiences.

 Authenticity: Be genuine and transparent in your communication and engagement.

Holistic Experience:
  Focus: Creates a seamless and consistent journey across all touchpoints with the brand,
catering to emotional, sensory, and functional needs.

 Goal: Build strong brand loyalty and positive associations by exceeding customer
expectations at every stage.

 Key elements:

o Consistency across all channels (website, social media, physical stores, customer
service)

o Personalized interactions tailored to individual needs and preferences

o Seamless buying journey with clear communication and easy navigation

o Emotional connection built through storytelling, values, and brand personality

o Multisensory experiences that engage different senses

 Examples: Apple's integrated ecosystem, Disney theme parks, Lululemon's community focus.

Unique Selling Proposition (USP):

 Focus: Identifies a single, differentiating feature or benefit that sets the brand apart from
competitors.

 Goal: Quickly capture attention and communicate the brand's unique value proposition.

 Key elements:

o Clear, concise, and memorable statement highlighting the unique advantage

o Easy to understand and communicate to a broad audience

o Differentiates the brand from competitors in a relevant way

o Supported by evidence and resonates with the target audience's needs

 Examples: "Melts in your mouth, not in your hand" (M&Ms), "The world's most comfortable
jeans" (Levi's), "Just do it" (Nike).

Choosing the Right Approach:

 Consider your brand, target audience, and resources.

 A strong USP can support a holistic experience, but a focus solely on a USP might neglect
other aspects of the consumer journey.

 Balancing both approaches can be effective for building strong brand loyalty and driving
positive consumer perceptions.

 Holistic experiences are often more complex and require ongoing effort to maintain
consistency.USPs are easier to communicate but can become less effective over time if not
supported by a strong brand experience.